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The freight rate on the US west coast route has decreased. Can this last ?

Time:2021-09-30 Publisher:Kevin Num:3630

Since the outbreak of the epidemic, sea freight has been rising. Many shippers and freight forwarders have no hope of the decline in sea freight.

But the miracle happened in these days, and the sea freight price fell rapidly. The most prominent one is the US west route.

The price of sea freight from Ningbo port and Shanghai port to the west coast of the United States has decreased significantly, which has decreased the increase in the previous three months in the past three days alone.

Data show that the sea freight has been high in the first half of this year. Taking the 20 foot standard container as an example, the price of the US west coast route rose from the initial US $1000 to nearly US $10000, up to US $15000.

Now the freight from Shekou port to Los Angeles port and Long Beach port has fallen below $10000.

The person in charge of a domestic foreign trade logistics enterprise said that the recent sharp decline in the freight price of the US west coast route may be related to the recently introduced power restriction policy.

He added that power rationing led to a decline in factory shipment capacity. Orders that could have been completed in ten days now take nearly a month. When there is no goods in the market, the freight of containers will not rise naturally.

However, some freight forwarders have given different views. He believes that the seasonal impact is a key factor, and the decline of freight is still based on different routes.

At present, the freight of American western route is declining, but other routes continue to rise. The reason for the drop in freight rates on the US west coast route may be that many ships returned home and there were more shipping spaces during China's national day.

Some freight forwarders believe that if the problem of port congestion is not solved, it will be difficult for the price to continue to decline and will rise back in the later stage.

On the other hand, the drop in freight on the route has damaged the interests of some people who hoard containers. In order to reduce losses, they sold their containers one after another.

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